ARMENIAN CENTRAL BANK INCREASES REFINANCING RATE FROM 6.5% TO 7.0%

ArmInfo
13.04.2010

ArmInfo. Central Bank of Armenia increased the refinancing rate by
0.5 percentage points to 7.0% in compliance with relevant decision
made by the CB Council on Tuesday, the CB press-service told ArmInfo.

In March 2010 versus February 2010 inflation totaled 0.8% falling
0.6 percentage points per year to 8.8%. The CB Board announced
that in conditions of the expanding monetary and taxation policies
implemented as part of the anti-crisis measures and against the
background of the upwards trends in the global economy rehabilitation,
the economic growth rates have exceeded the predicted level. In fact,
the current inflation environment was influenced by the above factors,
which meets the goals set by the Central Bank.

The CB Board predicts maintenance of the inflation environment in
the predictable period in conditions of the current macroeconomic
environment and increased tariffs for the main communal services
despite the downward trends of annual inflation.

The CB Board keeps on gradual toughening of monetary conditions aimed
to form real interest rate in conformity with inflation expectations.

Together with the government anti-crisis program, this will create
actual prerequisites for bringing inflation back into target. The
previous change of the refinancing rate was on March 9 2010 from 6.0%
to 6.5%.